Key Food to buy Waldbaum's stores in Albertson, Glen Head

Supermarket operator Key Food Stores Co-operative Inc. plans to take over two Waldbaum's on Long Island, along with 17 others stores in New York and New Jersey, from Great Atlantic & Pacific Tea Co., A&P said.

The stores are two Waldbaum's locations, on 1050 Willis Ave. in Albertson and 1-1 Park Plaza in Glen Head.

A&P filed for Chapter 11 bankruptcy late Sunday. The bankruptcy filing allows the company to continue operating while being protected from creditors.

On Monday, the company disclosed that it agreed to sell 120 of its stores for about $600 million to Key Food, Stop & Shop Supermarket Co. and Acme Markets Inc.

Key Food agreed to take over 19 stores, under the A&P, Food Basics, Food Emporium, Pathmark and Waldbaum's banners.

Stop & Shop said Monday it agreed to acquire 25 A&P stores in New York and New Jersey for $146 million. The Long Island stores on the list include Waldbaum's locations in East Hampton, Southampton, Baldwin, Massapequa, Long Beach and Huntington, and Pathmarks in Greenvale, Seaford and Franklin Square.

Acme Markets agreed to purchase 76 stores in New York, New Jersey, Connecticut, Pennsylvania and Delaware. None of those stores are on Long Island.

The purchase agreements are not final since they are subject to bankruptcy court approval, pending an expected auction.

A&P also announced Monday it will close 25 stores, including five on Long Island: Pathmark stores in Baldwin and Centereach, and Waldbaum's in Carle Place, Oceanside and Riverhead. The stores will close in the next few months but will remain fully stocked until then, the company said.

A&P, based in Montvale, New Jersey, was founded in 1859 and operates nearly 300 stores under several banners, including 33 Waldbaum's and 19 Pathmarks on Long Island. More than 90 percent of about 28,500 employees are represented by one of 12 local unions.

In its Manhattan bankruptcy filing, the company reported total assets of about $1.6 billion and total liabilities of about $2.3 billion, as of Feb. 28.

A&P previously filed for bankruptcy in 2010, emerging in 2012 as a closely held company owned in part by Ron Burkle's Yucaipa Cos.

A&P is blaming its failure to turn around the business on competition from companies such as Whole Foods Market Inc. and Trader Joe's Co. It also said it erred in keeping 50 to 60 underperforming stores open and not successfully reducing its pension obligations and other costs in the first bankruptcy.